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Blue Sphere Corporation Announces Landfill and Compost Contract in Uzbekistan

^{Published on 2010-05-11 05:42:15 - Market Wire}
 

LONDON--([ BUSINESS WIRE ])--Blue Sphere Corporation (OTCBB: BLSP) (the "Company" or aBlue Spherea), a company in the Cleantech sector as an Emission Reduction project integrator, is pleased to announce that it has signed a Term Sheet to implement clean development mechanism projects at two landfill sites in Uzbekistan to destroy waste methane gas and to produce compost . The Company has an exclusivity term until June 15, 2010 to conduct due diligence, negotiate contracts and arrange financing.

The projects would involve the construction and installation of a flaring system at two closed landfill sites with an option of power generation, subject to economic factors. The landfill sites were closed in 2004 and are projected to continue to create and emit methane until 2024.

This project is already very advanced with both letters of approval and PDDs (Project Design Documents a" a significant step) having been obtained for both the landfill gas and the compost components of the projects. The Projecta™s CERs have been sold forward at a'12.50 per CER through 2012 to Green Hercules Trading Limited, an affiliate of Cargill and other buyers have expressed an interest in purchasing the Projecta™s CERs through 2020.

At the landfills, there will be composting of Municipal Solid Waste (aMSWa) in aerobic conditions. The compost is and will continue to be sold for use as fertiliser. The maintenance cost of the project will be financed by revenues generated from the sale of fertilizer. The landfills generate approximately 25 tonnes of compost per day.

The next step is to submit the projects for validation and then for registration to the Executive Board of the Clean Development Mechanism (aCDMa). A validator has been selected and a price quote obtained.

The annual estimated Certified Emission Reductions (aCERa) for the landfills is 135,000 CERa™s per year. The CERa™s expect to start in 2011 and go through until 2024. Of this amount, Blue Sphere expects to net 855,000 CERs.

The total gross income to Blue Sphere over the 21 year life of the project based on 135,000 CERa™s per year is estimated by management at $18 MM USD, calculated at current and escalating CER prices.

The total investment for the projects is estimated at $5.1 Million USD, not including costs of a power generation system.

aWe are very pleased to announce the potential to take over a project that is already very close to commencing and that already has a signed contract with a buyer for the CERa™s. President Obama has made emission reduction a key component of his cap and trade program and companies producing a negative impact on the environment are purchasing carbon credits to offset their impact. We have the projects to minimize emission reduction and as this particular project demonstrates, a large company has already purchased the credits even before operations have commenced,a said Shlomi Palas, CEO of Blue Sphere Corporate.

For further information please contact the company at 888-309-9088 or [ info@bluespherecorporate.com ]

About Blue Sphere Corporation

Blue Sphere Corp. is a company in the cleantech sector as an Emission Reduction Project Integrator. Blue Sphere develops projects for greenhouse gas emission reduction and renewable energy production. The company aspires to become a key player in the global carbon reduction market, helping enterprises with high pollution emissions achieve their green goals. For further information please visit the Company's website [ www.bluespherecorporate.com ]

This news release contains aforward-looking statements.aStatements in this press release, which are not purely historical, are forward-looking statements and include statements concerning the Companya™s business outlook or future economic performance, anticipated revenues, expenses or other financial items; plans and objectives related thereto; and assumptions or expectations relating to any future events, conditions, performance or other matters. Such forward-looking statements include, among others, that we will finalize contracts to construct and operate a flaring system on two landfills; that the projects will emit methane gas until 2024;that we can perform on our landfill contracts and sell CERs, including successfully raising financing for infrastructure and equipment, use technology that is effective at burning methane in an environmentally friendly way, and complete the project as expected; that power generation may be feasible and add to revenues; that we can sell forward the CERs generated from the projects;that we expect to net 855,000 CERs; that CERs from the projects will increase in volume and in price; that the gross value of the project is $18 million; that the project costs are $5.1 million;that the maintenance cost of the project will be financed by revenues generated from the sale of fertilizer; ; and that the Company can become a key player in the global carbon reduction market.

Forward-looking statements are subject to risks, uncertainties and factors include, but are not limited tothe nature of the carbon credit industry, including changing customer demand, changing regulatory requirements, different regulations across national borders, customer acceptance of our services and products, the impact of competitive services, products and pricing, dependence on existing management, that technology may not work as expected and general economic conditions. In regards to our company, the following are also risk factors: : that we may not be able to finalize negotiations and sign contracts; our ability to finance operations and growth, our ability to attract and retain employees and consultants, competition from cheaper or more accepted competitors, whether our technology can perform under commercial conditions and our ability to keep control on costs. Readers should also refer to the risk disclosures outlined in disclosure documents filed by other start up environmental companies with the Securities and Exchange Commission available at [ www.sec.gov ].

The Company assumes no obligation to update the information in this release.